Economists react to FG’s decision to grant tax breaks to 27 industries

Granting tax break to additional 27 industries and products in Nigeria is a right step towards economic recovery, some economists have said. Th ey also described the move as an indication that Nigeria is on course out of economic recession and fi rmly towards growth. Th ese were the views of some notable economists and analysts, including Chief Consultant, B. Adedipe Associates Limited, Biodun Adedipe; and Chief Executive Offi cer, Economic Associates, Ayo Teriba, who spoke to PREMIUM TIMES on Tuesday.

“Th e approval by the Executive Council of the Federation, FEC, of 27 additional industries and products to enjoy pioneer status is a step in the right direction,” Mr. Adedipe said. “Th e decision is showing two things – that there are thinkers in the present government and that they are doing the right things at the right time,” he added. He said if the system and its processes are not abused, Nigeria would experience a strong recovery towards sustained growth. “Malaysia and several other enviable economies have used the same instrument to good eff ect.

Rather than reduce government revenue, it has huge potential to lever revenue and enable rapid job creation,” Mr. Adedipe said. For Mr. Teriba, government’s move by giving incentives to prospective investors means it was determined to attract investors to do business under the atmosphere created with the National Economic Recovery and Growth Plan. He said since October 2015, following the suspension of the scheme, prospective investors had been applying for the incentive without success. “With the approval of additional industries and products to enjoy the incentive, investments will come in based on the industries that have just been given the incentives.

“Th e decision is a positive development for the economy. It is going to be an increase in the investment fl ow and technology infl ow and a boost to employment generation.” Th e Lead Director, Centre for Social Justice, CENSOJ, Eze Onyekpere, however is of the

Granting tax break to additional 27 industries and products in Nigeria is a right step towards economic recovery, some economists have said. Th ey also described the move as an indication that Nigeria is on course out of economic recession and fi rmly towards growth. Th ese were the views of some notable economists and analysts, including Chief Consultant, B. Adedipe Associates Limited, Biodun Adedipe; and Chief Executive Offi cer, Economic Associates, Ayo Teriba, who spoke to PREMIUM TIMES on Tuesday.

“Th e approval by the Executive Council of the Federation, FEC, of 27 additional industries and products to enjoy pioneer status is a step in the right direction,” Mr. Adedipe said. “Th e decision is showing two things – that there are thinkers in the present government and that they are doing the right things at the right time,” he added. He said if the system and its processes are not abused, Nigeria would experience a strong recovery towards sustained growth. “Malaysia and several other enviable economies have used the same instrument to good eff ect. Rather than reduce government revenue, it has huge potential to lever revenue and enable rapid job creation,” Mr. Adedipe said. For Mr. Teriba, government’s move by giving incentives to prospective investors means it was determined to attract investors to do business under the atmosphere created with the National Economic Recovery and Growth Plan. He said since October 2015, following the suspension of the scheme, prospective investors had been applying for the incentive without success. “With the approval of additional industries and products to enjoy the incentive, investments will come in based on the industries that have just been given the incentives. “Th e decision is a positive development for the economy. It is going to be an increase in the investment fl ow and technology infl ow and a boost to employment generation.” Th e Lead Director, Centre for Social Justice, CENSOJ, Eze Onyekpere, however is of the

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